October 31, 2019
Advantage Title: Industry Bulletin 2019-06
UPDATE - NYS Law Chapter 297: Transfer Tax Returns for Residential Real Property Owned or Purchased By a Limited Liability Company
As previously noted in Industry Bulletins 2019-04 and 2019-05, copies of which can be found here, an amendment to New York Tax Law § 1409(a) (“Act”) and the addition of subdivision (h) to § 11-2105 of the NYC Administrative Code, both effective as of September 13, 2019, created new recording requirements for deeds transferring certain types of real property from or to a limited liability company (“LLC”). On October 23, 2019, the New York State Department of Taxation and Finance (“Department”) issued revised guidance (“Revised Guidance”) superseding previous guidance (“Previous Guidance”) issued by the Department in late September. The Revised Guidance can be found at the following link: https://www.tax.ny.gov/bus/transfer/rptidx.htm#conveyances
The Revised Guidance eliminates the requirement contained in the Previous Guidance for disclosure of taxpayer identification numbers for those parties listed in the Act. In addition, the Revised Guidance eliminates the requirement contained in the Previous Guidance for the disclosure (“Disclosure”) accompanying the TP-584 or TP-584-NYC to “…demonstrate that 100% of the ownership of each entity has been reported.” As a result, it is no longer necessary to list the percentage of ownership of each and every entity comprising the LLC. Nevertheless, as stated in the Revised Guidance, it is still necessary to disclose “…the names and addresses of all members, managers and other authorized persons of the LLC…until ultimate ownership by natural persons is disclosed.”
The Department has informally advised that any deeds rejected by a recording office for failure to provide taxpayer identification numbers and/or the percentage of ownership of each and every entity comprising the LLC should be resubmitted to that recording office absent that information.
The Company will keep you advised of any developments.
Please contact Drew Steigler, Chief Underwriting Counsel, at
631.424.6100 or firstname.lastname@example.org
with any questions.